Raley's Supermarkets
A family-owned American grocery retailer headquartered in West Sacramento, operating Raley's and several regional supermarket banners.
Last updated October 30, 2026
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Overview
Raley's is an independent, family-owned grocery retailer based in West Sacramento, California. Thomas P. Raley established the business as Raley's Drive-In Market in Placerville, California, on February 16, 1935. The company grew from a local supermarket operation into a multi-banner food retail group serving the western United States. Its principal Raley's banner is associated with full-service supermarkets emphasizing fresh food, prepared meals, private-label products, pharmacy services at selected locations, customer service, and community involvement. The company expanded through both organic development and acquisitions. It acquired Bel Air Markets in 1993 and Nob Hill Foods in 1997, strengthening its presence in Northern California. It entered additional value-oriented formats through Food Source and Market 5-ONE-5, and acquired Scolari's Food & Drug Company in 2018. Raley's also operated Aisle 1 fuel stations, but sold all 13 locations to Anabi Oil in 2018. The business briefly expanded into Las Vegas and New Mexico through the purchase of Albertsons stores in 1999. That Las Vegas operation was later sold to Kroger in 2002, with the proceeds directed toward stores in Northern California and Reno. Raley's Companies now includes the Raley's, Bel Air, Nob Hill Foods, Raley's O-N-E Market, Bashas', Bashas' Diné Market, Food City, AJ's Fine Foods, Eddie's Country Store, and FieldTRUE Organic brands. The acquisition of Bashas' Family of Stores, announced in December 2021, expanded the group substantially in Arizona and added specialty, conventional, and value-oriented formats. The acquired stores continued operating under their established local banners. The company has also invested in digital retail and new store concepts. Its eCart platform supports online ordering with pickup and delivery, including designated pickup areas at some locations. During the COVID-19 period, Raley's opened large stores in Sacramento's Land Park neighborhood and Rancho Murieta. The retailer has promoted fresh food, wellness, sustainability, and community service through marketing and charitable initiatives. Its community profile is also reflected in the former Raley Field in West Sacramento, a baseball stadium whose naming rights were later changed to Sutter Health Park. Raley's remains privately held and controlled by the founding family. Michael Teel, a grandson of Thomas P. Raley, became the majority shareholder in 2015 and serves as chairman. Keith Knopf became president and chief executive officer in 2018. The company operates in a highly competitive grocery market, where it has periodically closed stores, reduced costs, exited noncore businesses, and reshaped its store portfolio. In 2025, county district attorneys investigated and resolved allegations concerning unfair business practices, including the sale of expired over-the-counter medicines. The company also announced the closure of the last remaining Food Source store in Stockton, ending that discount grocery format.
History
Thomas P. Raley founded Raley's Drive-In Market in Placerville, California, on February 16, 1935. He led the company until his death in 1991. Over the following decades, the family-owned business developed into a regional supermarket operator with multiple banners and store formats. The company's early expansion included the acquisition of Bel Air Markets in 1993 and Nob Hill Foods in 1997. Raley's also created Food Source in 1995 as a more value-oriented format. In the late 1990s, it pursued geographic expansion beyond its established Northern California base. In 1999, it acquired Albertsons stores in Las Vegas and New Mexico and opened Las Vegas locations. The Las Vegas strategy was later reversed: Kroger agreed in 2002 to acquire 18 Raley's locations there for conversion to Smith's and Food 4 Less stores. Raley's cited slow growth and intense local competition, while directing proceeds toward stores and renovations in Reno and Northern California. The company faced competitive and economic pressure in the early 2010s. Store closures and more than 150 corporate layoffs were reported in 2011 and 2012. At the same time, Raley's retained a strong position in the Sacramento market and was recognized in consumer surveys for customer service. The company also pursued environmental improvements; several Raley's stores received U.S. Environmental Protection Agency GreenChill gold-level certification for refrigeration practices. Leadership remained closely connected to the founding family. Michael Teel, Thomas Raley's grandson, became majority shareholder in 2015 and later served as chairman. Keith Knopf joined the senior leadership team as chief operating officer in 2015, became president in 2017, and was promoted to president and chief executive officer in 2018. Raley's diversified and adjusted its operating portfolio during the 2010s. It acquired Scolari's Food & Drug Company in 2018 and introduced or developed additional concepts, including Market 5-ONE-5. Its Aisle 1 fuel-station business, which began with a Galt, California, location in 2004 and grew to 13 sites, was sold in 2018. In 2019, Raley's announced the closure of 27 in-store pharmacies and transferred prescriptions to national pharmacy chains. During the COVID-19 period, Raley's opened a 55,000-square-foot flagship store in Sacramento's Land Park neighborhood and a 35,000-square-foot store in Rancho Murieta. The company expanded its digital fulfillment capabilities through eCart, which supports online ordering, pickup, and delivery. Raley's marked its 85th anniversary with the Good Never Stops integrated marketing campaign and participated in food-delivery and fundraising efforts with Sacramento Republic. The 2021 acquisition of Bashas' Family of Stores significantly broadened Raley's geographic and brand footprint. Bashas', Bashas' Diné Market, Food City, and AJ's Fine Foods joined the wider Raley's Companies portfolio, while the acquired stores continued using their established identities. The group subsequently operated across several western states and in communities associated with tribal nations. In 2025, California county district attorneys investigated allegations involving unfair business practices, including the sale of expired over-the-counter medicines. The matter was settled with fines exceeding $400,000. That year, Raley's also closed its final Food Source store in Stockton, ending the discount-format banner. The company remains a privately held, family-controlled regional grocery group.
- 2025
Food Source format ended
[1]The last Food Source store, in Stockton, closed, ending Raley's discount grocery format.
- 2021
Bashas' acquisition announced
[1]Raley's acquired Bashas' Family of Stores, including Bashas', AJ's Fine Foods, and Food City.
- 2020
New Sacramento-area stores opened
[1]Raley's opened stores in Sacramento's Land Park neighborhood and Rancho Murieta during the COVID-19 period.
- 2019
27 in-store pharmacies closed
[1]Raley's announced the closure of 27 in-store pharmacies and transferred prescriptions to CVS Pharmacy, Rite Aid, and Walgreens.
- 2018
Scolari's acquired and Aisle 1 divested
[1]Raley's acquired Scolari's Food & Drug Company and sold its Aisle 1 fuel stations to Anabi Oil.
- 2004
Aisle 1 launched
[1]Raley's opened its first Aisle 1 fuel station in Galt, California.
- 2002
Las Vegas stores sold to Kroger
[1]Kroger acquired 18 Raley's Las Vegas locations for conversion to Smith's and Food 4 Less stores.
- 1999
Las Vegas expansion
[1]Raley's purchased Albertsons locations in Las Vegas and New Mexico and opened its Las Vegas stores.
- 1997
Nob Hill Foods acquired
[1]The company acquired Nob Hill Foods.
- 1995
Food Source format created
[1]Raley's created Food Source as a more value-oriented grocery format.
Products and positioning
A regional, service-oriented supermarket group positioned around fresh food, quality, wellness, convenience, and community participation, with additional banners covering specialty, conventional, and value-oriented grocery segments.
Full-service supermarkets · 1935
Raley's supermarkets
The core Raley's banner offers conventional supermarket shopping, including produce, meat, seafood, bakery, dairy, packaged groceries, prepared foods, beverages, and selected health-related products. Stores emphasize fresh food, service, private-label merchandise, and local community relationships.
Wellness-oriented grocery stores
Raley's O-N-E Market
A Raley's Companies banner focused on wellness, natural, organic, and health-conscious food and grocery selections.
Digital grocery fulfillment
eCart
Raley's eCart platform enables customers to place grocery orders online for pickup or delivery. Some locations provide covered, pull-through pickup spaces positioned near fulfillment areas to reduce collection time.
Supermarkets · 1993
Bel Air
Bel Air is a Northern California supermarket banner acquired by Raley's in 1993 and operated within the broader Raley's Companies portfolio.
Supermarkets · 1997
Nob Hill Foods
Nob Hill Foods is a supermarket banner acquired by Raley's in 1997 and associated with the company's regional grocery operations.
Multi-banner grocery retail · 2021
Bashas' Family of Stores
The Bashas' portfolio includes Bashas', Bashas' Diné Market, Food City, and AJ's Fine Foods. Raley's acquired the group in 2021, retaining the established banners and their regional identities.
Discount grocery stores · 1995
Food Source
Food Source was a value-oriented grocery format created by Raley's in 1995. The last remaining store in Stockton, California, closed in 2025, ending the format.
Controversies
Marketing campaigns
- 2020Good Never Stops
United States
Raley's used an integrated marketing campaign called Good Never Stops to mark its 85th anniversary and emphasize continuity of service and community support.
Brand decisions
2021
Acquisition of Bashas' Family of StoresM&ABackground
Raley's sought to expand its western U.S. grocery footprint and banner portfolio.
Action taken
Raley's acquired Bashas' Family of Stores, including Bashas', AJ's Fine Foods, and Food City.
Aftermath
The 118 acquired locations remained open under their existing brands, expanding Raley's Companies' presence in Arizona and related tribal markets.
2019
Closure of 27 in-store pharmaciesStrategyBackground
Raley's reviewed its in-store pharmacy operations.
Action taken
The company announced that 27 in-store pharmacies would close and that prescriptions would be transferred to CVS Pharmacy, Rite Aid, and Walgreens.
2018
Aisle 1 fuel business divestitureStrategyBackground
Raley's operated 13 Aisle 1 fuel stations in Northern California and Nevada.
Action taken
The company sold all 13 locations to Anabi Oil.
Aftermath
Raley's exited the fuel-station business and concentrated on grocery retail.
2002
Exit from Las Vegas storesStrategyBackground
Raley's faced slow growth and strong local competition after expanding into Las Vegas.
Action taken
The company sold 18 Las Vegas locations to Kroger for conversion into Smith's and Food 4 Less stores.
Aftermath
Sale proceeds were intended for store construction and renovation in Reno and Northern California.
- Kroger — Kroger acquired the locations and planned to convert them to its Smith's and Food 4 Less banners.
Recent events
Raley’s agrees to acquire Bashas’ Family of Stores[3]
Bashas’ Family of Stores signed a definitive agreement to be acquired by Raley’s Holding Co.; the transaction was expected to close by the end of 2021.
Raley’s announces planned acquisition of Bashas’[4]
Reported:
Bashas’ announced that it would be sold to California grocer Raley’s. The deal was expected to be completed by the end of 2021; the article does not report completion.
- Unconfirmed
Raley’s completes acquisition of Bashas’[5]
Reported:
Bashas’ became part of Raley’s after the acquisition was finalized. The companies said Bashas’ store banners, employment and Arizona operations would continue without change or interruption.
Raley’s launches “Good Never Stops” campaign[6]
Reported:
Raley’s launched its “Good Never Stops” integrated campaign to mark the company’s 85th anniversary and highlight positive community contributions by its team members, customers and partners.
Raley’s promotes Bristol Bay sockeye salmon campaign[7]
Reported:
Raley’s introduced a multi-pronged marketing campaign promoting Bristol Bay sockeye salmon through in-store branding, video, social media, print ads and store seafood events. The campaign was conducted in partnership with the Bristol Bay Regional Development Association.
Sources9 sources
- 1Raley's Supermarketsen.wikipedia.org
- 2Raley's official websiteraleys.com
- 3Raley’s同意收购Bashas’ Family of Storestheproducenews.com
- 4Raley’s宣布计划收购Bashas’knau.org
- 5Raley’s完成对Bashas’的收购fox10phoenix.com
- 6Raley’s推出“Good Never Stops”宣传活动supermarketnews.com
- 7Raley’s推出布里斯托尔湾红鲑营销活动seafoodsource.com
- 8Bashas’ to be acquired by Raley’sfreshplaza.com
- 9Raley’s launches new campaign to celebrate 85th anniversary | Produce Newstheproducenews.com
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